1. Listed below are the accounts of Boss Tweed Company on December 31, 2020. All the accounts have their normal debit and credit balances.

Account Balance

Cash $13,600

Interest expense 500

Accounts receivable 15,400

Salary expense 42,000

Supplies 1,500

Insurance expense 5,000

Prepaid insurance 2,800

Depreciation expense 4,000

Office equipment 34,000

Supplies expense 5,700

Accumulated depreciation 8,000

Advertising expense 12,000

Notes payable 16,000

Service revenue 88,000

Accounts payable 6,000

Dividends 10,000

Salaries payable 3,000

Retained earnings January 1, 2020 5,000

Interest payable 500

Common stock 20,000

Required: Prepare an income statement and a balance sheet for 2020.

2. Using the information from problem 1, prepare the necessary closing entries for the general journal.